How to own a house without money!

Submitted by Anonymous (not verified) on Tue, 11/20/2007 - 13:51

I am planning to buy my first house but I do not have that much of money. Are there any alternates and what should I be careful about while negotiating such a deal? I do not mind going in for a Mobile / Manufactured Home. Help!!

Hello Arianna,

Home is a dream for every individual. Thus you have to keep all caution. Determine your credit score. First you need to know whether you are eligible to get a loan or not. Above a 530 you will get a home loan at a determinable rate.

Wed, 11/21/2007 - 08:23 Permalink
mathew_jade (not verified)

It is indeed a great idea to own a house without money yet it is not difficult! I have done so and the main building blocks I found were at nice try-Morningstar.
And sure it’s a clever world so you should be careful. Please also go through the article
TOS vio... which will give you an insight of what all can happen while going through such a deal. All the best!

Wed, 11/21/2007 - 11:18 Permalink

Laura, I didn't know that your score has to be over 530...that's interesting! determining your credit score will be the first thing every potential homeowner needs to do and in our case we'll both have to do it as the home will be in both of our names. and if that doesn't work out then we'll have to put it in hubby's name as his credit is better than mine by far. good luck to you arianna, have you spoken and compared all possible lenders in your area? that was the first piece of advice given to us and while its some legwork and take some time, it's minimal compared the time and investments that you'll make into your own home,e specially if you plan on living there for any length of time. please keep us posted!

Wed, 11/21/2007 - 15:03 Permalink

Good points from all of you, seems like if you have a good employment history and your are presently working, can afford the payments and your credit score is at that 530, you should not have a problem. Just heed the warnings, there are some sharks out there, I would warn you to be careful with the type of rate, variable vs fixed, fixed you know what your payment is each month. Variable can jump very high, very quickly, this is something that I would definately pay atteniton to, try to go fixed so you can budget in the same amount each month.

Thu, 11/22/2007 - 12:13 Permalink

General consensus says to save 10% of the actual cost of the home for the down payment, plus closing costs and such. I wish you luck and with determination I'm sure you can own your own home! Keep working and working on your credit. Your scores will determine your interest rate which is very important.

Wed, 02/20/2008 - 21:03 Permalink

That a good question GN. I wondered that myself. When we went to the bank they said the fees were lower on a home equity and much higher on a mortgage loan because of closing cost.I never really asked I just took the best route for the least number of years that we could afford.

Thu, 09/18/2008 - 01:23 Permalink

It is a good idea to have a deposit before you take out a loan, getting yourself into a loan that you find hard to pay off if at all will have bad consequences. You really need to asses your financial situation and see how much you can borrow without going broke and move from there.

Wed, 11/19/2008 - 09:41 Permalink

Homeownership is really a big step. Dinfo has it correct when saying that you should have the depostit before taking out the loan and also being sure you can unkeep the payments. Along wiht that are also taxes and repairs. Home ownership has a lot of responsibilty and you have to be prepared to take them all on. If you do not feel your ready or think their is even a slight chance that you will not be a ble to afford it I would hold off and wait. If you default on a home loan you are not ready for it will mess up your chances for future home loans when you may be in better financial shape to handle this responsibility.

Wed, 11/19/2008 - 17:44 Permalink
Anonymous (not verified)

I want to have a house without money down is it possible?amy

Thu, 12/18/2008 - 03:39 Permalink

Hello.........I just want to put in my '2 cents'. I REALLY don't know if you can get a home with no money down. I would think you would have to have a GREAT credit score, to be considered for something like that. Have you talked to maybe a bank/credit union, in your area, for some advice? However......there are other people, on this forum, that can give you great advice, too.

Thu, 12/18/2008 - 03:47 Permalink

Hi guest
It is not possible to purchase a home without down payments. Even if you go for Federal housing loan, you need to make a 3% down payment of the price of the property. I think that since you do not have the money to make down payments, you can go for FHA loan which you can repay for a period of 30 years. Moreover, the Federal Housing loan comes with an attractive rate of interest.

Thu, 12/18/2008 - 09:17 Permalink

The Federal Housing loans really do have attractive rates. Sometimes these rates are much lower than rates you will see at your local bank. There can be a lot of detail on these types of loans so that you can get all the information out there I would suggest doing a little interent research. This would be the best way to get really good information.

Fri, 12/19/2008 - 01:06 Permalink

Even with a VHA loan (Military) I think you have to have SOME kind of downpayment. However...........someone, on the thread, did make a VERY good point. .....DO make sure you can AFFORD a house payment. TOO many people 'dive in' to house buying without looking at the financial means they may need. I know someone who was SOOO excited about getting an opportunity to buy a house, they din't think about all it involved. I KNEW this person couldn't afford a house payment in the first place. BOY...what a mess, it became for him.

Fri, 12/19/2008 - 06:10 Permalink

Sd Chargers, I do not know much about VHA loans and how they work. Maybe you could explain a little about them so that other military people could see that option is also out there. It would make an excellent new post since it does not seem to be a widely disgussed topic. AND yes people should always make sure they can afford any payment they get. Not just on a house but anything because when you default on payments it really adds injury to your credit report and will take a lot to get it rebuilt.

Fri, 12/19/2008 - 15:38 Permalink

Okey Dokey, Smokey!!LOl I'll explain the best that I can.....A VHA (Veterans Housing Associations) loan is basically a Home Loan 'program' JUST for the military. you can apply, through the VA, for a home loan. The rates are alittle bit lower and you have so much time to pay the loan back...just like a 'regular' home loan. If there is a house/property that someone likes, you can have a VHA rep come into the home and 'inspect' the home for VHA 'qualifications'.....I'm not sure what the 'qualifications are, though. the VHA, of course, checks your income, credit, etc. I know a few people who have gotten VHA loan and are pretty happy with them. NOW...this is important. You CAN get a VHA loan if you are STILL 'serving' in the Military and if you are NO LONGER 'serving' ( Retired and/or Honorable Discharge). If you have a Dishonorable Discharge, from the Military, you are not 'non-illegible' to get a VHA loan. If someone needs more advice on this, please let me know...thanks and glad to help.

Sat, 12/20/2008 - 14:27 Permalink

Wow this sounds like an excellent program. Hopefully all the veterans out there will relize this excellent opportunity is out there for them. Its good to see the interest rates are lower too. Thanks for taking the time to fill us in on this.

Sat, 12/20/2008 - 14:45 Permalink

You're welcome, FIREYONE. Some 'newbie' soldiers, that I know, are just learning about the program. From what I've read, on different websites (concerning the VHA Loans) the rates are pretty good. Another good 'incentive' of serving in the Military. Now..I don't know if I would 'qualify' because I'm just 'part time' (Reserves). They would have to look into income, and so forth. However....there ARE different TSP plans (Thrift Savings Plans), through the Military, that can help you save up for a downpayment, etc.

Sun, 12/21/2008 - 02:15 Permalink

I am just glad to see programs out there for our wetereans. I know sometimes when they are shipped overseas there credit can get messed up when someone forgets to make a payment or the comapny does not make its employees aware the person is serving the country.

Mon, 12/22/2008 - 00:30 Permalink

That's why we do A BUNCH of paperwork ( Wills, POA's, etc). My POA was WONDERFUL taking care of ALL of my bills, issues, etc. Remember...when you DO decide who your POA will be, MAKE SURE YOU CAN TRUST THEM~!!!!!! Lots' of 'horror' stories, about POA's not taking care of things. Even taking themoney and property of the Soldier. There are quite abit of programs that will benefit Vets.

Mon, 12/22/2008 - 04:56 Permalink
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Tue, 08/05/2014 - 10:27 Permalink
Karen Peterson (not verified)

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Fri, 09/15/2017 - 22:04 Permalink
Breonca Wilson (not verified)

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Thu, 11/15/2018 - 01:22 Permalink
Breonca Wilson (not verified)

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Thu, 11/15/2018 - 01:22 Permalink
Gabriel Jay (not verified)

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Wed, 01/02/2019 - 12:48 Permalink
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Thu, 01/10/2019 - 23:08 Permalink
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Mon, 01/14/2019 - 17:04 Permalink
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Thu, 01/24/2019 - 01:39 Permalink
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Thu, 01/31/2019 - 22:49 Permalink
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Fri, 02/01/2019 - 23:32 Permalink
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Sat, 04/13/2019 - 09:19 Permalink
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Sat, 04/20/2019 - 21:28 Permalink
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Wed, 04/24/2019 - 03:23 Permalink
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Thu, 05/02/2019 - 00:58 Permalink
Joseph Stone (not verified)

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Tue, 05/21/2019 - 09:39 Permalink
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Mon, 07/01/2019 - 09:13 Permalink
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Sat, 09/07/2019 - 22:43 Permalink
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Wed, 09/11/2019 - 14:47 Permalink
Richard Huffman (not verified)

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Sat, 11/30/2019 - 13:35 Permalink
Renner Wilson (not verified)

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Mon, 12/02/2019 - 15:01 Permalink
Kevin Williams (not verified)

My score was 352 out of 900 on clear score as you can see I cannot get anything at all due to being immature few years back. I had a few negatives, I had an IVA, I also had defaults with telecom companies and also credit cards. I went online and found a credit repair expert on credit sesame. I contacted him on his personal email – (DANIELKENCYBERSERVICES AT GMAIL DOT COM)and he asked me to text him on his number +1 407-680-2514 for further discussion and I did immediately. I said to him, “if you can help me I will forever be in your debt”. He said to me I will help you bring your credit profile up to speed. After few days he deleted everything bad on my credit report and increased my score from 352 to 819 making me the happiest man on earth. God bless him and his entire household. I strongly recommend him for your credit repair.

Wed, 12/04/2019 - 23:53 Permalink
Franklin Moore (not verified)

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Fri, 12/06/2019 - 00:24 Permalink
Kate Hunter (not verified)

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Fri, 12/06/2019 - 13:25 Permalink
James Graham (not verified)

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Sun, 12/08/2019 - 01:57 Permalink
Douglas Francis (not verified)

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Wed, 12/11/2019 - 22:49 Permalink
ADMIN II (not verified)

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Fri, 12/13/2019 - 04:43 Permalink